MXX stuck within tight trading range
Mexican IPC Index (MXX) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
MXX finished the week 0.26% higher at 35784.42 after gaining MX$223.66 (0.63%) today. Trading up to MX$247.95 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Wednesday, MXX actually lost -1.29% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (MXX as at May 22, 2020):
Friday's trading range has been MX$547.67 (1.54%), that's below the last trading month's daily average range of MX$745.83. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for MXX. Prices continued to consolidate within a tight trading range between 35277.54 and 36115.08 where it has been caught now for the last three trading days.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bullish Intraday Reversal" stand out. Its common bullish interpretation has been confirmed for IPC. Out of 384 times, MXX closed higher 52.08% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after five trading days, showing a win rate of 57.81% with an average market move of 0.11%.